APPROVING AMENDMENT OF CODE OF FAIR COMPETITION FOR THE
NARROW FABRICS INDUSTRY
An application has been duly made pursuant to and in full com-
pliance with the provisions of Title I of the National Industrial Re-
covery Act, approved June 16, 1933, for approval of amendments
to a Code of Fair Competition for the Narrow Fabrics Industry,
and a hearing has been duly held thereon, and the annexed report
on said amendments, containing findings with respect thereto, having
been made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, the National Industrial Recovery Board, pursuant to au-
thority vested in it by Executive Orders of the President, including
Executive Order No. 6859, and otherwise, does hereby incorporate,
by reference, said annexed report and does find that said amend-
ments and the Code as constituted after being amended complies
in all respects with the pertinent provisions and will promote the
policy and purposes of said Title of said Act, and does hereby order
that said amendments be and they hereby are approved, and that
the previous approval of said Code is hereby amended to include
an approval of said Code in its entirety as amended.
NATIONAL INDUSTRIAL RECOVERY BOARD,
By W. A. HARRIMAN, Admiilistrative Officer.
Approval recommended:
M. D. VINCENT,
A cfing Division Administrator.
WASHINGTON, D. C.,
May 9, 1935.

134943- 1844 -20- 35

REPORT TO THE PRESIDENT

The PRESIDENT,
The White House.
SIR: This is a report on the hearing on the amendments to the
Code of Fair Competition for the Narrow Fabrics Industry, held in
Room 2062 of the Department of Coninerce Building on April 18,
1935. The amendmlnent. which are attached are pre-ented by the
Code Authority.
In :accordance with c'ltolmary procedure every person who had
filed a request for an appearance was freely heard in public, and
all statutory and regulatory requirinients were complied with.
These amendments provide for open price filing" and unfair
trade practices such as false marking or branding, commercial
bribery, secret rebates and false invoicing.
The Deputy Administrator in his final report to the National
Industrial Recovery Board on the said ainmemlinentk to the -aid
Code having found as herein set forth, and on the b;ai-i of all the
proceedings in this matter;
The National Industrial Recovery Board finds that:
(a) The amendments to said Code and the Code as amended are
well designed to promote the policies and purposes of Title I of
the National Industrial Recovery Act including the removal of ob-
structions to the free flow of interstate and foreign commerce which
tend to diminish the amount thereof, and will provide for the gen-
eral welfare by promoting the organization of industry for the
purpose of cooperative action of labor and management under ade-
quate governmental sanction and supervision, by eliminating unfair
competitive practice~, by promoting the fullest possible utilization
of the present productive capacity of industrie., by avoiding undue
restriction of production (except as may be temporarily required),
by inrreaaing the consumption of industrial and agricultural products
through increasing purchasing power, by reducing and relieving
unemployment, by implioving standards of labor, and by otherwi-e
rehabilitating industry.
(b) The Code as amended complies in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion sub-s.ection (a) of Section 3, sub-section (a) of Section 7, and
sub-section (b) of Section 10 thereof.
(c) The Narrow Fabrics Code Authority was and is an industrial
group truly representative of the aforesaid Industry and that said
group imposed and imposes no inequitable restrictions on admission
to :memnler-hllip therein and has applied for these amendments.
(d) The amendments and the Code as amended are not designed
to and will not permit monopolies or monopolistic practices.

3

(e) The amendments and the Code as amenldel d are not designed
to and will not eliminuhite or oppress small enterprises and will not
operate to d iscri i n inte against them.
(f) Those engaged in other steps of the economic proces-es have not
been deprived of the right to be heard prior to approval of said
amendments.
For these reasons these amendments have been approved.
For the National Industrial Recovery Board:
W. A. HARRIMAN,
Administrative Officer.
MAY 9, 1935.

AMENDMENT TO CODE OF FAIR COMPETITION FOR THE NARROW
FABRICS INDUSTRY
The present Article VII is deleted in its entirety and a new Article
VII is substituted in lieu thereof which reads as follows:

ARTICLE VII-TRADE PRACTICE
SECTION 1. Open Price Filing.-(a) Any division or branch of
the industry may adopt the following open price provision by a vote
of the majority both in number and amount, of the members of such
division or branch. The vote shall be by written ballot, which may
be obtained by mail. When a division or branch of the industry
adopts the open price provision it shall notify the Code Authority
of such decision and of the date upon which said provision shall
become effective in said division or branch. The following shall be
filed with the Code Authority: the entire record of said vote, which
shall include a list of the members of the division, a list of the mem-
bers to whom ballots were sent, all of the ballots received, and a
count of the ballots received. A division or branch of the industry
may delegate to a committee the power to designate the products to
which the open price filing provision shall apply in said division or
branch. Such delegation of power shall be by a written vote of a
majority, both in number and amount of the members of such division
or branch. The Code Authority shall be notified of the names of the
members of said committee.
(b) Each member of a division or branch of the industry shall
file with the confidential and disinterested agent of the Code Author-
ity identified lists of all his prices, discounts, rebates, allowances,
and all other terms or conditions of sale, hereinafter referred to as
" price terms ", which lists shall completely and accurately conform
to and represent the individual pricing practices of said member.
Such lists shall contain the price terms for all such products as are
sold or offered for sale by a member of this division or branch of
the industry and which have been designated by the committee of
the division or branch, referred to in (a) above, or by a majority
of the members, both in number and amount. Said price terms shall
be filed in the first instance within fifteen (15) days after the effec-
tive date of this provision in a division or branch of the industry.
Price terms and revised price terms shall become effective imme-
diately upon receipt thereof by said confidential agent. Immedi-
ately upon receipt thereof, said agent shall by mail or, when so
requested, by telegraph or other equally prompt means notify said
member of the time of such receipt. Such lists and revisions, to-
gether with the effective time thereof, shall upon receipt be imme-
diately and simultaneously distributed to all members of the indus-
try and to all of their customers who have applied therefore and have
offered to defray the cost actually incurred by the Code Authority

in the preparation and distribution thereof and, be available for
inspection by any of their culstomers at the :ilii-e of such agent.
Said lists or revisions or any part thereof shall not be mnde avail-
able to any person until released to all miember.- of the industry ald
their cus-tomers, as aforesaid; provided, that prices filed in the fir.,t
instance shall not be released until the expiraiiion of the af)orsid
fifteen (15) day period after the effective date of this provision.
The Code Authority shall maintain a permanent file of all price
terms filed as herein provided and shall not dr troy any part of
such records except upon written con-,it of the National Industrial
Recovery Board. Upon request the Code Authority shall furnish
to the National Industrial Recovery Board or any duly d(ligniited
agent of the National Industrial Recovery Board copies of any such
lists or revisions of price terms. When any member of the industry
has filed revisions, such member shall not file a higher price within
forty-eight (48) hours.
(c) No member of the industry shall sell or oiler to sell any prod-
ucts of the industry, for which price terms have been filed at a price
or prices lower than, or upon terms or conditions more favorable
than those filed. However in no case shall a price be higher than
the filed price except in payment for additional services rendered.
(d) The open price filing provisions set forth above do not apply
to the courtesy sales made by one member of a division or branch
to another member in the same division or branch of the industry.
(e) Non member of the industry shall enter into any agreement,
understanding, combination or conspiracy to fix or maintain price
terms, nor cause or attempt to caiuse any member of the industry to
change his price terms by the use of intimidation, coercion, or any
other influence inconsistent with the maintenance of the free and
open market which it is the purpose of this article to create.
SECTION 2. D(
competition for the industry with reference to pricing practices
are declared to be, as follows:
(a) Wilfully destructive price cutting is an unfair method of
competition and is forbidden. Any member of a subdivision or of
any other industry or the customers of either may at any time com-
plain to the Code Authority that any filed price constitutes unfair
competition as destructive price cutting, imperiling small enterprise
or tending toward monopoly or the impairment of code wages and
working conditions. The Code Authority .-h:ll within five (5) days
afford an opportunity to the member filing the price to answer such
complaint and shall within fourteen (14) days make a ruling or
adjustment thereon. If .iuch ruling is not concurred in by either
party to the complaint, all papers shall be referred, to the Research
and Planning Division of N. R. A. which shall render a report and
recommendation thereon to the National Indulstrial Recovery Board.
(b) When no declared emergency exists as to any given product,
there is to be no fixed nlinimunl basis for price.- It is intended that.
sound cost estimating methods shall be u-ed and that consideration
shall be given to costs in the determination of pricing policies.
(c) In order to make generally available to mnem'bers of the indu s-
try information concerning methods of cost finding and accounting
which will assist such members to a more informed judgment con-

UNIVERSITY OF FLORIDA
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6 3 1262 08482 7285

cerning the effectiveness of their operations, the Code Authority
shall cause to be formulated methods of cost finding and accounting
capable of use by all members of the industry, and shall submit such
methods to the National Industrial Recovery Board for review. If
approved by the National Industrial Recovery Board, full informa-
tion concerning such methods shall be made available to all members
of the industry. Thereafter, each member of the industry shall
utilize such methods to the extent which he finds appropriate in his
own business. Nothing herein contained shall be construed to permit
the Code Authority, any agent thereof, or any member of the indus-
try to suggest uniform additions, percentages or differentials or other
uniform items of cost which are designed to bring about arbitrary
uniformity of costs or prices.
SECTION 3. The following unfair trade practices are prohibited
(a) False Marking or Branding.-The false marking or branding
of any product of the industry which has a tendency to mislead or
deceive customers or prospective customers, whether as to grade,
quality, quantity, substance, character, nature, origin, size finish,
or preparation of any product of the industry or otherwise.
(b) Commercial Bribery.-The giving, permitting to be given,
or directly offering to give anything of value for the purpose of
influencing or rewarding the action of any employee, agent, or
representatives of another in relation to the business of the em-
ployer of such employee, the principal of such agent or the repre-
sented party, without the knowledge of suchl employer, principal,
or party. This provision shall not be construed to prohibit free and
general distribution of articles commonly used for advertising ex-
cept so far as such articles are actually used for commercial bribery
as hereinabove defined.
(c) Secret Rebates.-The secret payment or allowance of rebates,
refunds, commissions, credits, or unearned discounts, whether in
the form of money or otherwise, or the secret extension to certain
purchasers of special services or privileges not extended to all pur-
chasers on like terms and conditions.
(d) False Invoicing.-Withholding from, or inserting in any
invoice, words or figures which make or tend to make such invoice
a false record, wholly or in part, of the transaction represented on
the face thereof.
Approved Code No. 312-Amendment No. 2.
Registry No. 299-43.